Summary: The State of Maryland offers special benefits for its military Service members and Veterans including retired military pay exemptions, education and tuition assistance, employment services, special military vehicle tags, as well as hunting and fishing license privileges. Eligibility for some benefits may depend on residency, military component and Veteran disability status.

State Benefit Highlights and Eligibility

State Taxes:

State Tax Advantage: None

Retired Military Pay: Military retirees or the Spouse of military retiree are able to subtract up to $5,000 of their military retirement income from their federal adjusted gross income before determining their Maryland tax. The retirement income must have been received as a result of any of the following military service:

Induction into the U.S. armed forces for training and service under the Selective Training and Service Act of 1940 or a subsequent Act of similar nature.

Military Disability Retired Pay: Retirees who entered the military before September 24, 1975, and members receiving disability retirements based on combat injuries or who could receive disability payments from the VA are covered by laws giving disability broad exemption from federal income tax. Most military retired pay based on service-related disabilities also is free from federal income tax, but there is no guarantee of total protection.

VA Disability Dependency and Indemnity Compensation: VA benefits are not taxable because they generally are for disabilities and are not subject to federal or state taxes.

Military SBP/ RCSBP/RSFPP: Generally subject to state taxes for those states with income tax. Check with state department of revenue office.

Maryland Pension Exclusion: Veterans 65 or older or totally disabled (or Spouse totally disabled) may qualify for Maryland's maximum pension exclusion of $27,100 under the conditions described in Instruction 13 of the Maryland resident tax booklet. If eligible, Veterans may be able to subtract some of taxable pension and retirement annuity income from federal adjusted gross income. Eligibility: To qualify, the Veteran must be 65 or older or totally disabled, or Spouse totally disabled, on the last day of the tax year AND; included on the federal return income received as a pension, annuity or endowment from an "employee retirement system".

Overseas Pay Subtraction: Legal residents of Maryland may subtract up to $15,000 in overseas pay if he or she earned active duty income overseas outside the U.S. boundaries or possessions. If the total military pay exceeds $30,000, the individual is not eligible for this subtraction.

Property Tax Exemption: A property tax exemption is available to Veterans with a permanent service connected disability rated 100% by the Veterans Administration may receive a complete exemption from real property taxes on the dwelling house and surrounding yard. These Veterans also may apply at any time and do not have to meet the September 1 filing deadline. Unremarried surviving Spouses also may apply for this exemption. Surviving Spouses of military personnel killed in the line of duty may apply for an exemption. Click here for current application.

Military Spouse Residency Relief Act: The Spouse of a Service member stationed in Maryland in compliance with military orders is not required to pay taxes on wages earned in Maryland if that Spouse is not a resident of the state of Maryland and maintains domicile in another state. Click here for application.

Vessel Excise Tax: Active duty military personnel are exempt from the 5% vessel excise tax levied on the sale, resale or transfer of a vessel. The exemption is for not more than one year to current owners of vessels who are members of the armed services and who are serving on active duty. The exemption applies only to vessels currently registered elsewhere and brought into Maryland because of the duty transfer. New purchases are not exempt.

Vehicle Registration Active duty military members not establishing residency because they are only temporarily stationed in Maryland do not need to register their passenger vehicle in this State if the vehicle is currently registered in your state of residence.

Active duty military members establishing residency in Maryland are eligible for a tax credit for any titling tax paid in another state when titling and registering a vehicle within one year of moving to Maryland.

State Tuition Waiver (STW): The State Tuition Waiver is available for Army National Guard Soldiers attending a "Partners in Education" institution. In order to apply, Soldiers must download the State Tuition Waiver form, have their Unit Commander sign the letter, and turn the completed document in to the finance office of their school. Most discounts range from 25% to 50% per semester. Tuition Waiver DocumentEligibility: Maryland Army National Guard members.

State Tuition Assistance Reimbursement (STAR): STAR is a program available to MDNG Soldiers whose tuition and fees are not 100% covered by STW and FTA. Service members can be reimbursed for these costs each semester. Service members are required to turn in the STAR form to the Education Office, signed by their unit commander, along with a copy of their schedule and bill, within 45 days after the start of the semester. No later than 60 days after the end of the semester, Service members are required to turn in their grades to the Education office for reimbursement. Please check with the Education office to obtain current reimbursement ratesEligibility: Maryland Army National Guard members.

Edward T. Conroy Memorial Scholarship: Aid for tuition and other educational expenses are available for Veterans and their Family members who are attending an institution of higher learning within the borders of the State of Maryland. You must be:

The Son or Daughter of a member of the United States Armed Forces who died or was 100 percent disabled as a direct result of military service;

A Veteran who suffers, as a direct result of military service, a disability of 25 percent or greater and has exhausted or is no longer eligible for federal Veterans' educational benefits;

The Son, Daughter or surviving Spouse of a victim of the September 11, 2001 terrorist attack who died as a result of the attacks on the World Trade Center in New York City, the attack on the Pentagon in Virginia, or the crash of United Airlines Flight 93 in Pennsylvania;

A POW/MIA of the Vietnam Conflict or his/her Son or Daughter

Or a state or local public safety employee or volunteer who was 100 percent disabled in the line of duty.

Veterans of the Afghanistan & Iraq Conflicts Scholarship Program: This program is designed to provide financial assistance to United States armed forces personnel who served in the Afghanistan or Iraq Conflicts, and their sons, daughters, or Spouses who are current high school seniors, and full-time and part-time, degree-seeking undergraduate students enrolled in an eligible accredited Maryland postsecondary institution.Eligibility: Uniformed Services Members of the United States who served in Afghanistan, or contiguous air space as defined in federal regulations, on or after October 24, 2001, and before a terminal date to be prescribed by the United States Secretary of Defense; or in Iraq, or contiguous waters or air space as defined in federal regulations, on or after March 19, 2003, and before a terminal date to be prescribed by the United States Secretary of Defense, may apply for a scholarship if they are:

A Veteran who served at least 60 days in the Afghanistan or Iraq Conflicts, as defined above;

An active duty member of the Armed Forces who served at least 60 days in the Afghanistan or Iraq Conflicts, as defined above;

A member of a Reserve Component of the Armed Forces of the United States or the Maryland

National Guard who was activated as a result of the Afghanistan or Iraq Conflicts and served at least 60 days, as defined above; or

A Son, Daughter, or Spouse of:

A Veteran or active duty member of the Armed Forces who is serving or has served in the Afghanistan or Iraq Conflicts at least 60 days, as defined above; or

A member of a Reserve Component of the Armed Forces or Maryland

National Guard who was activated as a result of the Afghanistan or Iraq Conflicts and served at least 60 days, as defined above.

High School Diplomas for WWII and Korean War Veterans: County Boards of Education award high school diplomas to Korea and World War II Veterans who left high school early to enter the Armed Forces. Diplomas are also issued to any Veteran upon successful completion of the General Education Development (GED) test. Call 410-767-0538 for information.

Interstate Compact on Educational Opportunity for Military Children: It is the purpose of this compact to remove barriers to educational success imposed on Children of military Families because of frequent moves and deployment of their parents by:

Facilitating the timely enrollment of Children of military Families and ensuring that they are not placed at a disadvantage due to difficulty in the transfer of educational records from the previous school district or variations in entrance or age requirements.

Facilitating the student placement process through which Children of military Families are not disadvantaged by variations in attendance requirements, scheduling, sequencing, grading, course content or assessment. Facilitating the qualification and eligibility for enrollment, educational programs, and participation in extracurricular academic, athletic and social activities.

Facilitating the on-time graduation of Children of military Families.

Providing for the promulgation and enforcement of administrative rules implementing the provisions of this compact.

Providing for the uniform collection and sharing of information between and among member states, schools and military Families under this compact.

Promoting coordination between this compact and other compacts affecting military Children.

Promoting flexibility and cooperation between the educational system, parents and the student in order to achieve educational success for the student.

Employment Assistance: Maryland law provides for up to 15 days of paid military leave "for military training or active military duty in a Reserve unit of the armed forces or in the organized militia" (Maryland State Personnel and Pensions Code, section 9-1104(3)) for State employees.Eligibility: National Guard or Reserve Service member

Employment Assistance: The Maryland Department of Labor, Licensing and Regulation offers valuable information on career advancement and education to Veterans. Maryland's One Stop Career Centers are part of a nationwide system that provides information to job seekers and employers. The Career Centers are located in 23 counties and Baltimore City.

Disabled Veterans Outreach Program (DVOP) The DVOP specialists provide targeted services to special disabled Veterans, disabled Veterans, disadvantaged Veterans and Veterans with other barriers to employment. Working with a DVOP, Veterans with disabilities can get a full range of employment and training services.

Representatives also assist Veterans in enrolling in the State of Maryland Workforce Exchange, which assists in the search for current job openings in your community, in the development of resumes to apply on-line for jobs, and in the filing for unemployment insurance. Spouses of military personnel required to relocate due to a transfer in military duty station are eligible to collect unemployment benefits in Maryland.

Homeless Veteran Reintegration Program (HVRP): The purpose of HVRP is to provide services to assist in reintegrating homeless Veterans into meaningful employment within the labor force and to stimulate the development of effective service delivery systems that will address the complex problems facing homeless Veterans.

Military Personnel Veteran-Owned Small Business No-Interest Loan Program: The Maryland Department of Business and Economic Development (DBED), in consultation with the MDVA, is currently accepting applications for no-interest loans via the Military Personnel and Veteran-Owned Small Business No-Interest Loan Program for the following categories:

A small business owned by a military reservist or a National Guard member called to active duty

A small business that employs a military reservist or National Guard member called to active duty

A Veteran small business owner or a Veteran seeking to start a small business

A small business that employs a service disabled Veteran

The purpose of the program is to provide financial assistance to small businesses in the categories listed above. The State of Maryland supports Veterans who have served our country, as well as the small businesses that employ them.

No interest loans range from $1,000 to $50,000. Loan maturity will be from one to eight years. The loan repayment period usually will not exceed the useful life expectancy of the equipment to be purchased. For more information about the program, eligibility details about the program and to obtain an application, contact Jerry Boden, Chief of Staff, MDVA, at 410-260-3841 or email at jerry.boden@maryland.gov.

Employment Preference: Eligible Veterans honorably released from active service may receive a 10-point Veterans' preference in State employment testing. The preference also includes the Spouses of disabled or deceased eligible Veterans. Call the Maryland Department of Budget and Management Office of Personnel Services and Benefits at 410-767-4850.

Medical Personnel and Spouses Relocating to Maryland (PROVET): Veterans, individuals who are preparing to separate from the military and their Spouses who are healthcare professionals are eligible for assistance with certification and job placement with Maryland's healthcare industry. Contact your local Veterans Employment Representative for more information.

Group Insurance: All Guard members are eligible for the Servicemember's Group Life Insurance (SGLI) and are automatically covered for $400,000 at $26.00 per month. The rate does not go up with age eligibility is covered as long as the Soldier is a member of the National Guard. Family members are covered under the Family Group Life Insurance (FGLI). Soldier's Spouse is eligible for up to $100,000 at various rates depending on age and Children under 18 are covered for $10,000 at no charge.Eligibility: Maryland Air and Army National Guard members.

Injury/Death Benefits: Provided for State Active Duty through Worker's Compensation. If Guard member is killed while on State Active Duty or Title 32 duty, $100,000 death benefit to Family if not eligible for Death Indemnity Compensation (DIC).Eligibility: Maryland Army National Guard members.

Disabled Veteran License Plates: Disabled Veteran license plates are issued in recognition of a customer's military service-related injuries. They can only be issued free of charge to a Veteran who is 100% disabled. The license plates are printed in two formats: with or without the universal symbol for disability. Paid DAV plates are considered organization plates. You can apply for the plates in person at any of the MVA's full service branch offices. You also can mail your application to the MVA's Specialty Tag Unit in the Glen Burnie office, or go to an MVA licensed tag and title service where they will assist you in applying.Eligibility: Proof of 100% disability from the Veterans Administration; Application for Maryland Parking Placard/ License Plates for Individuals with a Disability - this form is only required when license plates with the universal symbol for a disability are requested. Be sure to include the vehicle's information.

Gold Star Plate: The Gold Star Plate is available to individuals who are the surviving Spouse, parent, Child or sibling of a person who served in the Armed Forces of the United States and lost his or her life.Eligibility: Applicant must submit the application for Military Related License Plates ( form # VR-120), fee and one of the following: Copy of DD-3 approved by the Department of Defense, copy of casualty report, or, an overseas death certificate issued by the military indicating the name and date of death.

Learn moreVeteran Designation on Maryland Driver's Licenses: Maryland residents can now have 'Veteran' designated on driver's licenses. To have this designation placed on a license:

Request it the next time your license is up for renewal (no cost to you), or

Request it before your license is up for renewal ($20 fee)*

* If you are within six months of your scheduled license expiration date applicable license renewal fees will apply.

Bring one of the following documents to your local Motor Vehicle Administration (MVA) Branch Office:

DD214

Honorable Discharge Certificate

Letter from the Military Records Personnel Center in St. Louis confirming veteran status

Complimentary Pow-DAV Hunting Licenses: A complimentary lifetime hunting license is available to Maryland residents certified as a former Prisoner of War (POW) or a 100% service connected disabled American Veteran (Veterans Administration documentation required). The lifetime license is available only at DNR Licensing and Registration Service Centers and includes the bow stamp, muzzleloader stamp, and furbearer permit. The Maryland Migratory Game Bird Stamp is not part of the Complimentary License.

Hunting Privileges: Maryland residents serving in the United States Armed Forces and stationed in Maryland must purchase a Resident Hunting License before hunting, unless they are on official leave and possess a copy of their official leave orders. Maryland residents serving in the United States Armed Forces, while hunting during official leave in Maryland, do not need to purchase a hunting license, deer stamps, or DNR Managed Hunt Permit; however, they must purchase a Maryland Migratory Game Bird Stamp, a federal Migratory Bird Hunting and Conservation Stamp, and a Furbearer Permit. You must possess a copy of your official leave orders while hunting and comply with the Hunter Education and Safety Requirement.

Any nonresident serving in the United States Armed Forces whose duty station is in Maryland must purchase a Resident Hunting License before hunting. Any nonresident serving in the United States Armed Forces who is on leave in Maryland, but not stationed in Maryland, must purchase a Nonresident Hunting License before hunting.

Complimentary DAV/POW Fishing Licenses: A complimentary lifetime license is available to Maryland residents who are 100% service connected disabled Veterans or former Prisoners of War (POW).The license incorporates both the non-tidal angler's license and the Chesapeake Bay sport fishing license. It does not, however, include the trout stamp. Applicant must furnish a letter of disability or a letter of certification from the Veterans Administration with their initial application.

Complimentary Fishing License for the Blind: Complimentary annual tidal and non-tidal licenses are available to residents and nonresidents who are blind.

Fishing Licenses: Service member is a resident of MD, on active duty with the armed forces, on leave with official leave orders may fish without a license in the tidal waters of the State

Admission to State Parks: The Maryland Park Service offers a Universal Disability Pass for free entry to State Parks to individuals with disabilities. Additionally, the Golden Age Pass allows free entry to individuals 62 and older. For more information, call 410-260-8186. Application

Death Benefit to Surviving Spouse or Estate of Maryland Resident Killed in Action: The Department of Public Safety and Correctional Services is awarding a death benefit of up to $125,000 to the surviving Spouse, Children, dependent parents or estate of a Maryland service personal who is killed in action, or as a direct result of a wound suffered in action, in Afghanistan or its contiguous airspace, or Iraq or its contiguous waters or airspace. Applications must be received within three years.

The beneficiary, or an individual or agency applying on behalf of the beneficiary, must submit a letter of application to:

Free Copy of Vital Records: For purposes of a claim before the Federal Government, one copy of marriage licenses, and birth or death certificates, may be acquired free of charge from the appropriate source. Call the local office of the clerk of the Circuit Court (marriage and divorce) or the Bureau of Vital Statistics, 800-832-3277 or 410-764-3038.

There is no fee for:

A copy of a certificate of a current or former Armed Forces member that is requested by the member

A copy of a certificate of a current or former Armed Forces member or of a surviving spouse or child of the member, if the copy will be used in connection with a claim for a dependent or beneficiary of the member.

Eligibility: Service member must provide proof of service in the Armed Forces.

Jury Duty Exemption: National Guard members are exempt from jury duty. The additional criteria for this exemption are set out on the form that must be completed by your commanding officer or supervisor.Eligibility: Maryland National Guard members.

Veterans Home Program: TheCharlotte Hall Veterans Home is a program within the Maryland Department of Veterans Affairs and is the only Veterans home in the State of Maryland. The Home is a 454-bed facility providing a continuum of care from the 168-bed Assisted Living unit to a higher level of care in the 286-Skilled Nursing Home. Charlotte Hall Veterans Home also provides services for eligible Spouses who are unable to take care of themselves due to age or disability. The Home provides the support and services required for shelter, sustenance, medical care, and social services necessary to maintain the resident's medical condition and quality of life.Eligibility: Admission Requirements:

A Maryland Veteran, age 62 or older, who served on full time active duty in the U.S. Armed Forces, other than active duty for training, and was discharged or released under honorable conditions.

Certain members of a Reserve Component of the U.S. Armed Forces who meet the legal residence requirements.

Certain Non-Veteran Spouses of eligible Veterans to be admitted to Charlotte Hall.

Maryland's State Cemetery Program: The State of Maryland and the Maryland Department of Veterans Affairs is pleased to offer Veterans, and their eligible dependents, a final resting place at one of five State Veterans' cemeteries throughout Maryland. The MDVA Cemetery Program is the largest of its kind in the nation. In addition the Maryland Department of Veterans Affairs manages three Veteran Memorials. The Maryland World War II Memorial is in Annapolis, and the Vietnam War and Korean War Memorials are in Baltimore. Additionally, the Department shares joint responsibility with the City of Baltimore for the War Memorial Building in Baltimore.

Eligibility: The MDVA follows criteria established by the U.S. Department of Veterans Affairs National Cemetery Administration (NCA) to determine eligibility for burial at a Maryland Veterans Cemetery. Eligibility criteria for both Veterans and Dependents can be found by visiting the National Cemetery Administration. In addition to the NCA requirements for Veterans eligibility, the MDVA also requires the Veteran to have two years residency in Maryland.

Documentation needed to determine eligibility:

Military service: A copy of an official military discharge document is usually sufficient to determine eligibility for burial. Discharge documentation is usually not needed for scheduling when a Veteran or eligible Dependent is already interred in a Maryland Veterans Cemetery.

residency requirement (for the Veteran): A discharge document indicating Maryland as the home of record, draft board records showing legal residence at time of entrance into military service, two years of tax assessments on property owned by Veteran, nursing home, hospital or institutional records showing that upon admission the Veteran's legal residence was in Maryland, two years of continuous Maryland tax records, Maryland school transcripts - 12 years or more continuous enrollment, up to date Maryland voting record, valid Maryland driver's license, Maryland utility bills, letter on an elected official's letter head verifying two years Maryland residency, recognized fraternal, civic or veterans organization official letterhead providing a record of 2 years residency, any other substantial evidence that may establish the required residency

Reduced Fare Program for Veterans with Disabilities (Metro Disability ID/SmarTrip® Card): Metrobus and Metrorail customers with disabilities may be eligible to ride at a discounted rate. Those customers who qualify will be issued a Metro Disability ID card. Metro Disability ID/SmarTrip® cards can be used to:

Pay Fare when using Metrobus and Metrorail

Buy a 7-Day regional pass

Pay half the peak fare on Metrorail

Pay 85¢ with cash or if paying with the Metro Disability ID/SmarTrip® on regular Metrobus routes and other regional bus services

Eligibility: Disabled Veterans who have been granted a 60% or greater disability rating by the Department of Veterans Affairs do not need to complete Part B or C of the application. The applicant must appear in person at the Metro Transit Accessibility Center, 600 5th Street, NW, Washington, DC with a valid photo ID and an original letter of disability notification issued by the Department of Veterans Affairs. Disabled Veterans rated at 100% can show their valid DD Form 2465 Department of Defense Uniformed Serves ID card in lieu of an award letter. Metro Disability ID Card Application